Well I have played through the entire vol1 but this problem only came up recently for vol2. I cant see any of the shadows, rengeki rings, battle area, after kicking chims you cant physically see the chim spheres flying to you etc.

I was wondering if anyone could help me trouble shoot?

Im currently using GSD 10 hardware, pixelshader 2.0, the rest of the settings for the graphics are set as default. I tried with GSD 9 hardware, software, both didnt work. Neither did GSD 10 software.

Both VU compilers are ticked. So is the EErec and multi treaded GS mode thing

Try the latest beta of PCSX2 (1474) which is available at the top of the page. Download the latest beta plugins from that page as well and make sure MicroVU0 is on in the CPU options. That should fix any graphic glitches you're having. If not, post again and we'll see if we can't figure something else out ^_^